Air bag theft and fraud are putting consumers’ lives in danger. Tragically, missing air bags sometimes cause serious or even fatal injuries.

In a heart-rending incident, San Diego-area parents Robert and Mary Ellsworth, members of CARS, lost their 18-year-old son Bobby, who had recently graduated from high school Why?  Because his friend’s pickup truck was missing the front air bags. Bobby was riding as a passenger on a narrow, winding road when the the pickup collided head-on with a BMW.  The Ellsworths didn’t find out until later that the pickup had been in an earlier crash. The front end was heavily damaged and both front air bags had deployed.

The former owner’s insurance company, State Farm, had decided it was not worth fixing. So the insurance giant “totaled” it. But that wasn’t the end of the line. Instead of ensuring it was sold only for scrap, or parts, they sent it to an auction where it was sold to the highest bidder. The same thing happens with an estimated 1.5 million vehicles each year. This way, State Farm and other auto insurers manage to recoup more for their “totaled” cars than if they were sold only for parts.

The buyer made shoddy repairs and cut corners. Sealing Bobby’s fate, he decided not to replace the air bags. Instead, he stuffed the empty compartments where the air bags belonged with craft paper. Then he covered them up, so it appeared that the air bags were intact.

Bobby’s friend, who was driving the pickup, and the driver and passengers riding in the BMW — equipped with air bags — survived. After the crash, experts who examined the wreckage concluded that if the passenger air bag had been replaced, Bobby would also have survived.

Air bags are a tremendous bargain, especially compared to losing a life. But — not to unscrupulous rebuilders, who are only interested in making a quick buck. Auto crash investigators have discovered air bag compartments packed with whatever was handy — rags, Styrofoam, packing peanuts, or even crushed beer cans.

Then the auto fraudsters cover them up. It’s cheap and easy to buy fake air bag covers over the internet.  Companies that sell the fakes offer them complete with manufacturer logos or the initials “SRS” — standing for “supplemental restraint system” — embossed on the cover.  Connecticut’s former Attorney General, Richard Blumenthal, cracked down on one company that advertised fake air bags in Connecticut. But  state law enforcement officials’ hands may be tied, when the companies are located in other states, or sell the fakes over the internet.

Won’t a warning light come of if the air bags aren’t working?  Not necessarily. Some shady rebuilders also tamper with the circuitry that reports on the air bag status, when you turn on a car. Bottom line: you can’t count on a warning to alert you the air bags are missing, or the electronics that control them are corroding due to flood damage.

How can you make sure any used car you’re considering still has all the air bags intact? Insist on having a trusted, reliable independent auto technician check out the car, including checking all the air bags, before you buy. This report shows what can happen if you don’t get a vehicle inspected first:

WOOD-TV 8 Grand Rapids, Michigan– do the air bags on your used car work?

Think that odometer fraud is a crime of the past? Digital odometers were supposed to make altering a car’s mileage harder. And they did – for a while. But new gadgets for turning back odometers are now available on the internet — and shockingly easy to use.

An eye-opening undercover investigative report by CBS channel 2 in Los Angeles shows how it’s done — in a scam that has attracted the attention of authorities.

“CBS 2 investigation uncovers odometer fraud possibly affecting thousands of consumers”

Odometer fraud remains a serious crime in the U.S., robbing consumers who pay thousands more than a car is really worth. Plus they face costly repairs they didn’t anticipate. Adding insult to injury, warranties are usually void on vehicles with altered odometers. So even if you buy a car that was sold with a warranty, you may be stuck paying out of pocket for repairs.

How can you avoid odometer fraud? Vehicle history reports don’t always capture mileage discrepancies. So be sure to get a reliable auto mechanic to thoroughly inspect any used car you’re interested in buying, before you agree to anything. An altered odometer may register a trouble code that a qualified mechanic can detect, using specialized diagnostic equipment. Also insist on seeing all the work orders for past repairs, and contact the repair shop to confirm the mileage.

The average mileage for most cars is around 12,000 a year. Be especially suspicious when sellers claim a car has significantly lower mileage.

OK, so you need a car to get to work. Or look for work. Or get to school. But you have no credit, or your credit score has taken a nosedive. Now what?

Most credit-challenged people head to the local auto dealer strip, where they are lured by ads trumpeting “No Credit? No problem!” “Bankruptcy? No problem!” There, they are steered into buying overpriced, junky cars that often break down soon after sale, and need expensive repairs.  The kicker — usually, the down payment is more than the car is worth. In other words, if you can afford the down payment, you could buy the same car elsewhere — and not have to make any car payments at all.

Of course, the dealers are eager to sell you their overpriced clunkers, and get you into a loan that lasts for years. Then when the car doesn’t work, they are very eager to repossess them and sell them again. Each time the car changes hands, they make a profit. The sweet spot for them is when they end up with multiple consumers paying the deficiencies for loans on a single car they repossessed over and over again.

The trade association that represents the “buy here pay here” dealers in California has admitted to legislators in Sacramento that a whopping 30% of its customers end up defaulting on their loans. Often, that is because the car broke down and the consumers couldn’t get to work, and lost their jobs.

Meanwhile, your credit is even worse, and you have no car — and an even bigger debt.

Many people assume they have no choice. They feel trapped into buying from a “buy here pay here” dealer. But — there is a much better route you can take.

You can buy a car from another consumer. It’s simple, and you can get a good, safe used car for under $5000, if you do it right. You can an either take out a loan in advance — usually you’ll find the best rates if you join a credit union — or you can save up and pay cash.

Here’s how to do it: CARS Car Buying Tips

Today’s cars last longer and many makes and models provide safe, reliable transportation for years, even after they have over 100,000 miles on the odometer.  Recently, Edmunds.com’s Consumer Advice Editor Ron Montoya initiated a project to demonstrate that you can find a good car for under $5,000 — and pay cash. Instead of handing over $300 in monthly payments to a shady dealer, it’s smarter to save that money and keep it on hand, for maintenance and repairs.

More about Edmunds’ advice onhow to buy a good used car — with cash

Thousands of car dealers across the nation have been selling cars they don’t even own. Don’t be victimized by shady dealers who engage in what’s known as “car kiting” — selling cars they take in trade, without paying off the outstanding liens.

How do they do it? Dealers who are having trouble making ends meet, or are just crooked, take cars in trade from consumers who still more than the cars are worth — known as being “upside down” or “underwater.” The dealers promise to pay off the rest of the loan, and the amount the consumer owes is rolled over and added on top of their next loan.  Then the dealer fails to pay off the loan. Instead, he “kites” the car — selling it without first paying the lender and getting proper title to the car.

If you buy the car that was traded in, you may be out of luck. That’s because the former owner’s lender still has the title to the car, and expects to be paid. When the dealer fails to pay, the lender can repossess your car. They can seize it even if you are a very responsible borrower and make every payment in full and on time, to your lender. When your car is repossessed, that can leave you without a way to get to work, and cost you your job. Plus a repossession typically stays on your credit for 7 years. Many employers check credit reports before they hire, so a repo can also become a barrier to employment.

How can you protect yourself from car kiting?

1. Insist on seeing the title before you buy. If the dealer doesn’t have the title, it may be because they failed to pay off the outstanding balance.

2. Double-check with your state’s motor vehicle department to make sure the title is legitimate (it’s too easy for a shady dealer to counterfeit a title).

Want to learn more about car kiting scams?   Here’s one case that caught the attention of New Mexico’s Attorney General:

http://www.youtube.com/watch?v=L_je_rhuq7E

One of the most frequent complaints CARS gets — “I just bought the car, and as soon as I drove it off the lot, the check engine light came on.” Or “the engine blew up.” Or “the transmission stopped shifting.”

This happens all the time. And it can be catastrophic, resulting in losing the car and your job — and having your credit trashed.

How can you avoid the pitfalls of buying a used lemon, that needs expensive repairs right away?

#1 — ALWAYS insist on getting your own, independent inspection by a reliable auto technician, BEFORE you agree to buy. Don’t trust the seller — even if it’s a large dealership and the salesman seems nice and friendly. They are out to make a profit, and you don’t want it to be at your expense.

A good place to find an independent technician is Car Talk’s Mechanics Files, at
Car Talk Mechanics Files — reviews written by consumers

#2 IF you already bought the car AS IS, and you do have problems, don’t take it back to the dealership for repairs. It’s a trap. Think about it. What are the chances a dealer who cheated you over the condition of the car will suddenly get religion and fix it properly?

Instead, they usually keep the car for weeks and do band-aid repairs, that don’t last, in hopes you will give up and stop paying for the car. Then they spring the trap — and repossess your car. Then they have your down payment, and any payments you made, and — the car. Then they can sell the same car again and again to other hapless consumers. Meanwhile, you lose your car, and maybe your job, and the repo stays on your credit for 7 years. A disaster.

Instead, take the car to a reliable mechanic and get if fixed right. Then you can seek reimbursement from the seller. If he refused to pay for the repairs, you can try small claims court. But it’s better to just get it inspected first, and avoid a huge hassle.

California is moving closer to curbing sour deals on used cars sold by “buy here pay here” auto dealers, who target struggling people with bad credit — including members of the Armed Forces and their families. CARS is on the forefront in pushing for the reforms.

Los Angeles Times report:

http://www.latimes.com/business/la-fi-buy-here-pay-here-20120425,0,6508765.story